Agriculture CS maintains revenue was forgone, not lost, as National Committee on Agriculture questions the selection of beneficiary companies, citing opaque nature of the process
Agriculture Cabinet Secretary (CS) Mithika Linturi announced that the Kenyan government waived a total of Sh16.5 billion in import taxes for maize, rice, and sugar between January and September this year.
Linturi detailed the figures, including Sh13.2 billion for rice, Sh3.3 billion for maize, and an undisclosed amount for sugar during a session with the Departmental Committee on Agriculture, chaired by Tigania East MP John Mutunga.
Addressing concerns about the lost revenue, Linturi said there was no revenue lost, but rather that it was “foregone to safeguard Kenyans.” The foregone revenue is the percentage of duty normally charged.
The National Assembly Committee on Agriculture, led by John Mutunga, questioned the selection criteria for benefitting companies, expressing doubts about the transparency of the recruitment process and demanding disclosure of all firms involved in recent imports. The MPs directed Linturi to provide a comprehensive list of companies benefiting from duty waivers for sugar, rice, and maize imports.
Lawmakers raised concerns about the qualifications of these companies as importers, emphasizing the lack of clear criteria and the extension of importation facilitated by a Gazette Notice issued in October 2023.
Kwanza MP Ferdinand Wanyonyi stressed the importance of tangible evidence showcasing how duty waivers have impacted the cost of sugar, maize, and rice for consumers, asserting that the benefits seemed to be concentrated solely on importers.
Nyando MP Jared Okello echoed these concerns, questioning the criteria for designating a company as an importer.
In response, Linturi disclosed that 163,827 tonnes of sugar, 156,957 tonnes of maize valued at Sh6.6 billion, and 707,107 tonnes of rice worth Sh37.6 billion were imported between January and September.
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